e Show all your computations in order to earn maximum credit for a correct answer. 1. (a) Progressive Company has the following income statement for 2020: $6.000.000 1.000.000 2.000.000 Sales Variable operating costs Fixed operating costs EBIT Interest EBT Tax (at 40%) EAT Preferred dividends Earnings available to stockholders Shares outstanding Compute Progressive's DOL (3 points). (ii) Compute Progressive's DFL (3 points). 3.000.000 500,000 2.500.000 1.000.000 1.500.000 400.000 1.100.000 500.000

Show all sour computations in ordor tor earn masimam efedit for a correct answer. 1. (a) Progressive Company has the following income stafement for 2020 (i) Compute Progressive's DOL. (3 points). (ii) Compute Progressive's DFL (3 points)